GST Hike on Aerated Beverages Likely

3 Dec 2024 , 01:06 PM

According to news reports, the GoM on GST rate rationalisation voted Monday to increase the tax on aerated beverages from the current 28% to 35%. The administration also intends to raise taxes on other sinful products, such as tobacco and cigarettes.

On December 21, the GST Council, which is chaired by the Union Finance Minister and includes her state equivalents, is anticipated to examine the GoM report. The council will make the final decision over changes to the GST rate.

Luxury and demerit items are subject to the highest slab of GST, whereas necessities are either excluded or charged at the lowest slab. Luxurious items like cars and washing machines, as well as inferior items like aerated water, are subject to a 28% tax.

According to the report, the GoM’s report on tariff rationalisation was completed on Monday and would be given to the council.

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